BB to extend sharecropper loans through Brac
Bangladesh Bank (BB) will provide low-interest loans to three lakh sharecroppers in 160 upazilas through nongovernmental organisation Brac.
Bangladesh Bank Governor Dr Atiur Rahman said: "We are to introduce the programme next season and the central bank board has approved Tk 500 crore in principle for this purpose."
The governor said Brac would form small groups of sharecroppers, train them and distribute the loans. The loans will be disbursed at a 10 percent interest rate.
Regions that are lagging behind in terms of development would be prioritised in receiving the loans.
Rahman fulfilled 100 days in office as the central bank chief. On the occasion, he took questions from reporters on the issues ranging from his accomplishments to future plans.
On loan defaults, Atiur said coordinated efforts are required to retrieve bad loans: Sick industries and wilful defaulters will have to be identified.
The governor added that the government should form a committee, which would decide upon the action to be taken against loan defaulters. Rahman also said the definition of loan defaults should be changed.
The government is yet to pass an ordinance of the past caretaker government in parliament to redefine loan loans and reform the banking sector. "We have written a letter to the government about it. We hope the government would take steps soon."
He mentioned that the finance minister had earlier said the wholesale loan defaults would be rescheduled. He said he would soon meet the finance minister to discuss these issues.
The central bank governor said he sat in talks with the prime minister and the finance minister on a separate pay-scale for the central bank. He is optimistic that the plan would get through.
The central bank is set to provide loans for large investors and exporters from its foreign currency reserve, under a special arrangement, in an effort to fuel investment.
Rahman said the central bank is going to take steps to utilise the excess liquidity and foreign currency reserve to increase investment.
The government should immediately take steps to implement a 500-megawatt power project with its own resources, instead of looking for donor assistance, the governor told reporters.
According to statistics, the foreign currency reserve touched an all-time high of $8.05 billion yesterday. On the other hand, excess liquidity with commercial banks on June 30 was Tk 34,762 crore, also a new high in the history of banks in the country.
The presence of vast excess liquidity points to a gloomy investment climate.
A central bank report said import expenditure decreased substantially, in comparison to export earnings and remittance and the excess liquidity was because of a presence of more foreign currency in the market.
The BB governor said: "We are taking several steps to expedite investment. We will extend loans through the banks under special arrangements to the big investors who otherwise take term-loans from outside."
He said investors could take loans from the banks that have offshore branches and the rate of interest would also be low.
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